Energy conservation fuels technology growth opportunities

2011 has proven to be a challenging year for the global technology industry and its customers. Following a strong rebound in 2010 from what has become known as the “Great Recession”, the global recovery slowed considerably in 2011 as Western economies struggled to sustain growth while coping with high sovereign debt, unemployment and low bank liquidity. Governments in the Asia-Pacific and Latin American regions were prompted to take action to moderate growth in order to combat rising inflation. These challenges were further exacerbated by tragic natural disasters including the massive earthquake and tsunami in Japan and the severe flooding that occurred in Thailand.

As we prepare to enter 2012, let us hope that the scale of natural phenomena experienced during 2011 will not recur. The ongoing European sovereign debt and related banking challenges are likely to persist for some time as governments around the world collaborate to develop and implement solutions. The US economy is growing slowly but still faced with high unemployment and a muted housing market. Asia-Pacific and Latin American countries have returned to a more accommodative stance towards growth as inflationary pressures have receded. The economic uncertainty associated with these items is weighing on consumer and business confidence as we head into the new year.

However, within this uncertain macroeconomic environment several exciting growth opportunities exist for the technology industry fuelled in part by the global drive for energy conservation. Simply stated technology innovation has the potential to improve people’s lives and will thus see continued demand. Let’s now explore some of the most promising opportunities entering 2012.

The automotive industry has continued its rebound from the depths of the recession. Although vehicle sales in Western Europe have been lacklustre, a growing middle class population in China and throughout the developing Asia-Pacific and Latin American regions have contributed to higher automobile sales globally. In fact, China has become the world’s largest consumer of automobiles. Government regulations for improved fuel economy, lower emissions and increased passenger safety combined with consumer demand for greater comfort and convenience features have led to strong growth in electronics and semiconductor content in vehicles. Powertrain, interior and exterior lighting, infotainment, HVAC, safety systems, and in-vehicle connectivity represent some of the best opportunities in automotive applications. ON Semiconductor is building on its strong position in powertrain, ASICs, sensor interface, power management and infotainment ICs to meet our customer’s needs in the automotive market.

Wireless communications device sales surged in 2011 driven by growth in media tablets and the introduction of low cost smartphones. The mass adoption of these devices has been accompanied by the demand for increased features, longer battery life, and thinner and lighter form factors. Power efficiency and density are at a premium in smartphones and tablets, thereby presenting opportunities for innovative new solutions to meet complex usage demands. In addition, the advent of these products is fostering a transition from the computing keyboard and mouse interface paradigm to a new touch and voice interface paradigm. Here opportunities exist for advanced multi-touch interface products with gesture recognition, and intuitive voice interface solutions. ON Semiconductor’s energy efficient power and interface solutions, broad portfolio of protection devices and advanced micro-packaging solutions address the challenging demands of wireless communications devices.

Government energy efficiency programs such as Energy Star in the US, China National Institute of Standardization (CNIS) and Top Runner in Japan continue to raise the bar on power supply and motor design in a broad range of electronic products. System designers are being challenged to constantly reduce the amount of electricity consumed by their devices. Consumer white goods such as air conditioners, washing machines and refrigerators are now adopting higher-efficiency variable speed motors to conserve energy. The advent of “smart appliances” is being combined with these high-efficiency motors to minimize energy usage. This in turn is driving higher electronics and semiconductor content opportunities in white goods power supplies, communications and user interface solutions. ON Semiconductor is expanding its portfolio of inverter and motor driver modules to support customer’s needs for new energy efficient white goods.

Energy-saving LED lighting will continue to present growth opportunities through the coming year as homeowners respond to rising energy prices and authorities seek to trim their costs in light areas such as city centers, streets and municipal buildings. For example, China recently unveiled a plan to phase out energy inefficient incandescent lighting beginning 2012. Advances in LED technologies will continue to improve the performance of light sources, while semiconductor manufacturers like ON Semiconductor will focus on opportunities to improve lighting control with better chips and new topologies that enable more efficient energy conversion.

Electronics and semiconductors will also continue to enable better control and management of resources in various industrial sectors. Trends such as increasing power supply efficiency, pervasive sensing and control, automation of building services, and development of smart grid devices and applications will build up throughout the coming year.


About the Author
David Somo joined ON Semiconductor in 2009 and leads the company’s worldwide marketing strategy and programs. He brings more than 20 years of semiconductor and electronics industry experience to his position. Previously, Somo was Senior Vice President of worldwide sales and marketing at Celerity, a leading supplier of precision instruments and advanced gas and liquid delivery systems to the semiconductor equipment and manufacturing industry. Before joining Celerity, he also served as Senior Vice President, worldwide sales and service, and corporate officer at MEMC Electronic Materials, a leading supplier of silicon wafers to integrated device manufacturers and semiconductor foundries. Somo was also Vice President of strategic account sales at Advanced Micro Devices (AMD), a leading supplier of x86 compatible microprocessors and flash memory. He has a BSEE degree from Arizona State University.


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